Connect with us

Hi, what are you looking for?

Latest News
• Lahore has highest number of patients-329 in country • Punjab allowed use of its water share for cotton sowing to Sindh • Faisal Edhi files visa application for Palestine to help war-torn country • Indus water system to see massive dip in next 24-48 hours • 100 migrants swim to Spain’s Ceuta enclave during last weekend of April • Prisoners make up over 60pc of Thailand’s Covid cases • Economy contracts 1.5pc in CY2020: study • 18 officials suspended in Lahore over ‘out-of-turn vaccination’ • Carmakers seek cut in duties • CAA revokes permission for Dubai-Peshawar flight • Pakistan desires strong ties with EU: COAS • K2 base camp area gets internet access, phone coverage • Govt challenges LHC order letting Shehbaz go abroad • Govt to unveil Rs110bn agri package in budget • Forex firms supply $4b to inter-bank market • Car sales contract 17% to 17,144 units in April • CDWL approves four development projects worth Rs8.7bn • PM’s aide Zulfi Bukhari steps down over ring road scam • Biden administration approved $735 million arms sale to Israel • India's Gujarat evacuates over 200,000 people as Cyclone Tauktae hits • Pakistan’s first female Google Developer, Sakina Abbas becomes Expert for Flutter • Karachi records highest night temperature in May since 2015 • Crude oil rose 22 cents to $66.50 a barrel • Gold rate fell 50 cents to $1867.10 an ounce • Dollar is trading at Rs 152.85 in the interbank market • American Idol eliminates Casey Bishop to determine its top 3 finalists • WarnerMedia tie-up with Discovery to target streaming big shots
News Alert
    • Covid Updates: 2,566 cases reported while 135 deaths recorded in last 24 hrs
    • Currently, 67,665 cases are active in the country
    • The death toll reaches 19,752 in Pakistan
    • 2,989 people recovered in last 24 hours
    • The current positivity rate is 8.8%  in the country
    • Over 163 million infected globally, more than 3.3 million dead, over 97 million recovered
    • Tokyo doctors call for cancelation of Olympic Games due to Covid-19
    • Bide surges international vaccines aid in riposte to Russia, China 
    • Germany mulls making vaccines free for all from June 7 
    • EU regulator backs month-long storage of Pfizer vaccine in fridges 
    • UAE reports 1,229 new coronavirus cases, 2 deaths
    • Eurovision Song Contest returns despite the pandemic
    • At 26pc, Karachi's East district records Sindh's highest positivity rate
    • Dubai eases Covid-19 restrictions, allows full hotel capacity 

Latest Updates

Policymakers Only See Two classes, Upper-Class and the Upper than Upper Class: Carmakers ignore middle-class buyers

800cc Cars or below 660cc Cars have no place with policymakers in new Auto Policy of 2016-2021

Toyota Motor Corp.'s Lexus LC500h hybrid coupe is displayed at the Guangzhou International Automobile Exhibition in Guangzhou, China, on Friday, Nov. 16, 2018. More than 60 new models are being unveiled at the auto show in the southern city of Guangzhou starting Friday, with manufacturers betting on swanky SUVs and electric cars to revive a market headed for its first annual slump in at least two decades. Photographer: Qilai Shen/Bloomberg

The Auto Policy 2016-2021 will end on June 30, 2021, but there is no discussion on rolling out small 800cc or below cars by any new international entrants who are more inclined towards introducing sports utility vehicles (SUVs) and high engine power models under duty concessions.

Moreover, the international carmakers show no signs of starting a Greenfield project for manufacturing 800cc or below vehicles needed by the masses.

Under the Auto Policy 2016-2021, Pakistan attracted over one billion dollars in investment from new entrants — mainly from Korea and China.

2016-2021 auto policy mainly focused on bringing competition that would result in reduction of car prices especially for the middle-class population of the country.

Even after five years, there is not a single entry level car of below 800cc by any international brand of repute where simultaneously the auto market has been flooded with SUVs and high-end passenger cars.

Under the 2016-21 policy, new entrants are allowed import of parts at the concessionary custom duty of just 10 percent, while old manufacturers are importing these parts at 30pc custom duty.

Chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Abdul Rehman Aizaz said the assembly of SUVs is an easy option for new entrants.

“They have been allowed to import most of its parts at a concessionary rate of duty due to a thin ‘A max part list’ of this segment, assemble the vehicle and sell these in the market easily which is already booming because of low-interest rates and a high demand from consumers.”

The Paapam chairman explained.

“Actually the auto policy of 2016-21 has resulted in a price benefit for high-end consumers of SUVs and passenger cars.”

He added.

Concessions on import duty provided in the 2016-21 policy would continue till June 2026. These concessions have resulted in subsidisation of import, loss of revenue to the government, employment generation in a foreign country instead of Pakistan, loss of GDP to the country etc, he lamented.

Without any doubt the 2016-21 policy, especially in the case of new assemblers, resulted in a slowdown of localization and loss of business to auto part manufacturers who are key stakeholders in the automobile value chain and where the bulk of the employment is generated, he added.

In the new Auto Policy 2021-26, there are indications that duties on completely built-up (CBU) and completely knocked-down (CKD) will be reduced across all segments of passenger cars and SUVs. Reduction in CBU and CKD would once again result in subsidizing the imports and that too mostly in the luxury cars and SUV segment.

“Before finalization, there is a need that all proposals shall be deliberated in detail with ample time and opportunity to discuss the pros and cons and come up with a policy that will support the make in Pakistan vision of the Prime Minister.”

Mr Aizaz summed up.

Shankar Talreja at Topline Securities said there has been a global shift towards SUVs and that trend with auto policy 2016-21 has become more affordable for consumers as well.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Facebook

International

• Joint statement also urges Afghan parties to realise historic opportunity for political settlement • PM, Saudi crown prince back political solutions to conflicts...

Economy

PPP Chairman says that the scale of inflation can never fall down through adopting the charity from different countries and he condemns the way...

Latest Updates

Areesh Fatima becomes the youngest Microsoft Certified Professional in the world

International

There is no shelter left for Palestinians as their homes are taken away, mosques are attacked, and hospitals bombarded with the world leaders watching...

Copyright © 2021 The Truth International